I repeat: “Where is the Estate Tax Revision?”
In December I wondered in this newsletter whether our national legislators would pass legislation regarding Federal estate taxes. They did not. Where does this leave us? For the moment we estate planners and elder-lawyers are in limbo. If a client has already died in 2010 or if they die soon, there is no current estate tax. There is talk of remedial legislation that will be retroactive to January 1st. Wait till the litigators “get ahold of” that one!
For your information, there is some precedent that Congress can pass retroactive legislation in matters such as this (that affect the federal pocketbook) but we’ll wait and see. There is also talk that the current administration would like to give a “year off” from paying federal estate (and gift) taxes but it is hard to see how that is wise given the current national financial crisis. It would help very wealthy families and hurt less wealthy families who will pay capital gains taxes on inherited assets over $1.3 million dollars.
After 2010 the estate tax exemption will be one million dollars again and the estate tax rate will increase to 55%. That will affect many more families. Standard language found in many estate plans could leave spouses with nothing. It is important to you check with an elder law or estate planning attorney to make sure your estate plan does what you want it to do. Call us with any estate planning questions.
Jeremy Howe. Kristy Garside. Hilary Carlson. 841-5700
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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in Wills and Trusts, Estate Planning, Guardianship, Probate, and Veterans Aid and Attendance Benefits.
They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for Family Law issues such as Divorce, Child Custody and Visitation, Support, and Military Family Law.
Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.
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